Jim Curry - Home Buyers Guide V2 Book

expense as part of the overall cost of purchasing a home. Once you’re a homeowner, you’ll have additional expenses on top of your monthly mortgage payment. For example, you’ll be responsible for paying property taxes, insuring your home against disasters, paying homeowners’ association or condominium fees, and making whatever repairs the property requires. Mistake #3: Not Knowing Your Credit Score Many buyers don’t bother looking into their credit score when making fin ancial preparations for their home-buying experience, but if you decide to apply for a mortgage loan without checking your credit score, you could end up paying a lot more than you expected. It’s best to get a credit check beforehand. Good credit is a critical component in applying for a home loan, and there are steps you can take to repair any potential credit problems that crop up. Mistake #4: Disregarding Local Housing Market Trends Many buyers don’t pay attention to local housing market trends, which is a big mistake. Why? Th e housing market fl uctuates over time; it’s just how real estate works. Sometimes it favors buyers (a buyer’s market), and sometimes it favors sellers (a seller’s market). Further, sometimes the market can sh ift dramatically over a three- to six-month period. Several factors a ff ect housing market trends, including the ratio between supply and demand, interest rates, and the overall condition of the economy. It’s imperative that you pay attention to these trends, and to consider how the housing market changes in your ideal location, as home prices vary from one location to another. Stay on top of comparable sales in the area: If homes sell for below listing price, 60

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